Month: November 2011

Make the Most of Insider Connections

It’s not just your imagination: Sales of pre-owned aircraft have climbed and inventory has shrunk.

JetNet reports that pre-owned business aircraft sale transactions between January and July increased 11.2 percent compared with the same seven-month period in 2010, and turboprop sales increased 3.7 percent. Pre-owned inventories continued to decline gradually in July, to 13.7 percent for business jets and 10.1 percent for business turboprops versus the same month last year, representing 1.2 percent and 0.8 percent drops in inventories, respectively.

This trend means that if you’re in the market for a pre-owned jet, you’ll spend more time looking for the aircraft you want — and finding fewer options. That is, unless you work with a jet broker.

Less pain, more plane

Using a jet broker takes the pain out of buying an aircraft. You don’t have to waste valuable time searching through private jet sales listings, inspecting and haggling over the jet: You simply let an expert do it for you.

Companies such as L&L International will take down your requirements, work with you to refine them to meet your budget and business needs, and procure the perfect lease or finance plan for the acquisition of the aircraft. Your involvement consists of making the final selection and signing the bill of sale.

You may not know exactly which type of private jet is most suitable for your needs, but a jet broker can help you understand your options.

Dedicated service for sellers and buyers

If you already have a personal or corporate jet, you may find that you need to upgrade to a jet that carries more passengers, is capable of longer flights or is more luxurious than your current aircraft. If you have a jet for sale and also want to buy a new model, a jet broker is a valuable asset.

You are likely too busy to put in the dedicated hours required to secure both the best price for your own jet and for the jet you want to purchase. It’s your jet broker’s job to work tirelessly on your behalf to secure the best deal. Brokers have good relationships developed throughout the world of buying and selling jets. Thus, they are in the best position to research not only the best aircraft on the market, but also the best off-market deals.

In today’s market, a jet broker’s insider knowledge saves you time and effort — and presents opportunities you don’t want to fly by.

Highlights From Dubai Air Show

The Dubai Air Show, happening right now, Nov. 13–17, 2011, is always the place for all things aeronautical. This year’s exhibit has continued that tradition. Record numbers of jets have been ordered: On Day 3 of the show, orders already total $47 billion (USD) —three times more than the tally of the last show in 2009.

Qatar Airways and Emirates were the big spenders at this year’s air show; Emirates made a firm order for 50 of Boeing Co.’s 777-300ER aircraft. These two companies are funneling global travelers through the Middle East at an unprecedented rate. Combined, the two carriers ordered enough aircraft to seat 38,000 passengers.

And many of those global travelers can expect to travel through UAE in the coming years. Because of its location, travelers can take a long haul flight from the UAE either east to Asia or west to Europe. In Dubai, the Al Maktoum International Airport is due to be completed in the next decade. It will be the largest airport in the world, capable of handling 160 million passengers per year, compared to 70 million at London’s Heathrow Airport.

Take a look at the new business jets featured at the Dubai Air Show;  120 aircraft were on display. The next show will take place at Al Maktoum International Airport in 2013.

Cabin Comforts Deliver Great ROI

Whether the cabin of your current aircraft is looking shabby or you are purchasing a pre-owned aircraft, a practical move that adds value to your investment is an interior upgrade.

Now is an excellent time to upgrade your aircraft interior, with refurbishment shops and technology vendors aggressively competing for business. Such providers offer a range of services, work with a variety of materials, and have specialized expertise in working with aircraft interiors.

A worthwhile investment

Jet brokers agree that although makeovers may not generate a 100 percent return on investment, operators may conceivably expect a 60  to 80 percent return. Operators will have the pleasure of a new or improved interior and enjoy a better price when it’s time to sell.

Before you shop for estimates, it’s important to know the extent of the work you want done. Does the aircraft require only a touch-up or a full-cabin makeover? More or fewer seats? An office nook or in-flight entertainment upgrade?

A consultant can help you compare your wants and needs and clarify the extent of the work your aircraft requires.

Choose your provider wisely

The Internet makes it relatively easy to research a prospective consultant, but don’t rely only on the information you find on the company’s website. Be sure to call references. The consultant should ideally have at least 10 years’ experience to ensure they have been exposed to many different problems and situations linked to this sector of the industry.

An even better option is hiring an aviation completion management firm with staff members that have different levels of experience. Such a firm provides specialists such as a paint expert overseeing the painting of the aircraft or an experienced woodworker to build, finish and install cabinets.

Whether your upgrades include simple cosmetic improvements, an upgrade to technology or a full overhaul, choose your consultant as if you were hiring a full-time employee. Ask the same questions you would a potential staff member, and you won’t be disappointed.

FAA Encourages Wildlife Reporting at GA Airports

The FAA launched a new campaign on Nov. 8, 2011, asking the entire GA community to increase its reporting of wildlife collisions with aircraft. The main outreach component of the effort includes the printing and distribution of 12,000 posters to the GA community. The poster, “Report Wildlife Strikes,” is designed for frequently used areas, like training and break rooms.

The Wright Brothers documented the first aircraft-wildlife collision in 1905 in Dayton, Ohio. Obviously, aircraft and birds have endured a tenuous relationship since the beginning of air travel.

The FAA has had a wildlife hazard management program in effect for more than 50 years. From 1990-2010, more than 121,000 strikes were reported, but only 6 percent of these instances were from GA. The FAA is trying to change that. The factsheet released Nov. 8 explains innovations the agency has made to make wildlife hazard reporting easier.

  • The poster contains a QR code, so anyone with a smartphone that is QR-code equipped can report a wildlife strike.
  • The FAA set up a new website that easily allows users to report an incident.

Wildlife strikes endanger human and animal lives, and they cause significant damage to private property. You can see the aftermath of these collisions at a gallery on the wildlife mitigation website. Access to comprehensive data about the number of incidents, localities and the species involved allows researchers and officials to improve safety at airports and in the air.

Improved Jet Market Puts Pressure on Buyers

If you’re considering purchasing a private aircraft for your business, you’re not alone.

Recent trends indicate that business aviation activity is gaining ground. That means if you’re considering buying a jet, finding the right one at the right price will present more challenges.

Flight and manufacturing activity on the upswing

Aviation International News (AIN) reports that Part 91 flights (owner-operated aircraft) saw a year-over-year climb of 4.9 percent in August, and Part 91 light jet activity increased 10.3 percent.

Jet manufacturers and pundits also reported improvements in the market compared with last year:

  • Gulfstream sales are expected to be up 14 to 15 percent this year, and the company’s production backlog includes orders for more than 200 G650s.
  • Dassault Aviation Chairman Charles Edelstenne reports that its order intake for new Falcons in the first half of 2011 was 22 units, compared with orders for just two jets in the same period of 2010.
  • Although business jet deliveries will remain flat this year at about 549 aircraft, they could rise to more than 650 next year, according to JPMorgan North American Equity Research’s latest business jet monthly report.

Tightening the search radius

Although an improving market is good news, it presents challenges for those looking to purchase a jet.

  • More competition with other buyers in the market
  • Longer wait for a new aircraft
  • More limited inventory of used aircraft

To find the right aircraft at the right price, you’ll need insider information and expertise. That’s where a professional jet broker comes in.

Jet brokers consult closely with you about your requirements and constraints to discover the private jet that is most appropriate for you. They have in-depth knowledge of the available pre-owned jets for sale and can broker the purchase and the sale of private jets, using their own market and off-market connections. By knowing when “jets for sale” ads are about to come up, jet brokers ensure their clients are the first in the line for the perfect private jet.

Jet brokers will work with you to negotiate terms with the seller and even help you to procure financing and insurance. Your best bet for a good deal on a pre-owned jet is to rely on the expertise of a professional jet broker.